Using decade-long data across countries from 2000-2010, countries with high money growth tend to have _____ inflation.
A) high
B) low
C) constant
D) decreasing

Question

Quizplus · Accepted Answer

Countries with high money growth tend to have high inflation. This is because when there is an increase in the money supply without a corresponding increase in the supply of goods and services, the demand for goods and services increases. This leads to an increase in prices, which is inflation.

Using Decade-Long Data Across Countries from 2000-2010, Countries with High